Which of the Following Decreases Aggregate Demand

question 209

Multiple Choice

Which of the following decreases aggregate demand?

• A) The government increases taxes on both business and personal income.
• B) Households believe that the economy is headed for good times, with higher future incomes.
• C) The quantity of money in the economy increases.
• D) Foreign incomes rise.

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Definitions:

Provincially Governed

Operated or regulated by the government of a province or state rather than by the national government.

Financial Protection

Measures or strategies implemented to safeguard individuals, organizations, or countries against financial loss or hardship.

Employment Insurance

A government program that provides financial assistance to eligible workers who lose their jobs and are actively looking for employment.

Portability Clauses

Provisions in contracts or agreements that allow benefits or rights to be transferred from one context to another, such as from one job to another.